VivoPower PLC (NASDAQ:VIVO, FRA:51J) announced that it has secured a definitive $50 million private investment in public equity (PIPE) from a group of US, European, UK and Nordic institutional investors, with the financing led by New York-based Blue Sky Capital.
Blue Sky Capital, which describes itself as a specialist investor in AI data centers, led the strategic investment round. Arctic Securities acted as sole placement agent and introduced additional institutional investors, including infrastructure and real estate-focused funds from the UK, European Union and Nordic region, as well as Nordic family offices.
Gulf Cooperation Council-based family offices and entities associated with VivoPower executive chairman and CEO Kevin Chin also participated in the financing on the same terms.
VivoPower said the net proceeds will be used to support the operational conversion of its Mo i Rana AI data center in Norway and to reduce corporate debt.
The company said the PIPE is primarily structured as convertible preference shares with a conversion price of $7.50 per share into a fixed number of Class A ordinary shares. The securities also carry a 6% annual payment-in-kind coupon and include fixed-price warrants priced at a premium to the market.
VivoPower noted that the structure converts into a fixed number of shares, with no variable share overhang.
"This strategic financing further strengthens VivoPower's balance sheet and provides growth capital to accelerate our transition toward powered land and AI data center infrastructure commencing with Mo i Rana in Norway," Chin said in a statement.
"We are pleased to have broadened our base of long-term oriented institutional investors who share our vision and recognize the value in what we are building," he added.